New Delhi: Ruling Bharatiya Janata Party (BJP) and Shiv Sena on April 9 joined an agitated Opposition in the Lok Sabha in vociferously demanding withdrawal of the decision on introduction of value added tax (VAT) regime and restoration of excise exemption to manufacturers of readymade garments having a turnover of up to Rs one crore.

"VAT wapas lo" (withdraw VAT), shouted members cutting across party lines during the Zero Hour.

Dissatisfied with the assurance given by Textiles Minister Kanshi Ram Rana that he would convey the feelings of the members to Finance Minister Jaswant Singh, angry Opposition members from Samajwadi Party (SP), All India Anna Dravida Munnetra Kazhagam (AIADMK), Congress and Rashtriya Janata Dal (RJD) stormed the well.

Sensing the mood of the members, Speaker Manohar Joshi adjourned the House for the lunch recess.

"Delhi will never accept VAT. I have been always against it right from the beginning. The day it is made applicable in the Capital, traders will be badly hit," BJP member Madan Lal Khurana said.

Shiv Sena leader Chandrakant Khaire regretted imposition of eight per cent excise duty on ready-made garments produced by small manufacturers in the general Budget and demanded its withdrawal forthwith.

Joining Khurana, Jaishree Banerjee (BJP) said cottage industry would be severely affected if the excise duty on ready-made garments were not taken back.

Raising the issue, SP leader Mulayam Singh Yadav and party colleague Ramjilal Suman said the move to impose VAT was aimed at finishing small businesses and paving the way for imported goods to flood Indian markets.

Terming it as "draconian", Yadav demanded that government should lose no time in rescinding its decision.

Congress chief whip P R Dasmunsi suggested that the VAT regime should be kept in abeyance for a year and the issue should be referred to a Parliamentary committee to consider all aspects including rationalisation of the tax collection policy.

"A law should be made to prevent harassment of small traders and the operation of VAT stayed till then," he said.

His party colleagues Vilas Muttemwar and S P Jaiswal said the levy on the power loom sector had affected three crore people and some of them had even threatened to commit self-immolation. This would encourage return of the 'inspector raj', Muttewar said.

Members from AIADMK and DMK supported the demand for withdrawal of VAT and excise duty on ready-made garments. Tamil Nadu Chief Minister J Jayalalithaa had written to the Centre in this regard, the AIADMK members said.

Responding to the demand, the Textiles Minister said as the issue related to the Budget, he would take up the issue with the Finance Minister "to see how we can find a way out".

Earlier, Opposition parties demanded suspension of Question Hour to discuss the VAT issue, but the Speaker Manohar Joshi rejected it.

Joshi also disallowed adjournment notices given by several Opposition members on the prop med VAT regime, which is scheduled to come into force from June 1.

PTI